Retail Business Guide

https://sbs-spe.feddevontario.canada.ca/retail-business-guide
Table of contents
Introduction
Getting started
Regulations
Taxation
Financing
Other resources
Introduction
A retail business sells products directly to consumers from a location such as a storefront, a mobile kiosk or an online shop.
This guide will give you general information and regulations for operating an independent retail business. For information on buying a
franchise, visit the Canadian Franchise Association website or call them at 1-800-665-4232.
Read online:
Franchising
Getting started
When you start a business there are several things to consider before you can sell your product or service. Most businesses in Ontario need to
complete a minimum of three basic steps:
 Find out what licences and regulations apply to your type of business
 Choose a business structure and register or incorporate your business
 Determine if you will need to collect and remit HST
Our Starting a Business guide will give you more information on these steps and other basic requirements for starting a business in Ontario.
Read online:
Starting a Business
Choosing a location
For most businesses, choosing an appropriate location is critical. Your ideal location will depend on your business needs, zoning restrictions and
where your customers and competitors are. Taxes, noise and the local business environment are also important factors to consider when
reviewing your options.
Read online:
Choosing and setting up a location
Contact your local municipality to determine what zoning requirements will apply to your location before you start selling. Visit the Association
of Municipalities of Ontario (AMO) website for a listing of municipalities.
Read online:
Association of Municipalities of Ontario
E-business
If you plan to have an online presence for your business there are specific legal requirements to follow, such as providing secure credit and
debit card transactions, charging taxes to customers outside of Ontario and creating contracts at a distance.
Read online:
E-business, security, privacy and legal requirements
Selecting your inventory
Your inventory is made up of the products you have in stock. Managing your inventory accurately will show you which products are in demand
and which ones are not selling. Keeping track of what you sell can make it easier to determine which products to stock.
Read online:
Inventory management
Selecting your supplier
A supplier provides the products you need to run your business. Finding the right suppliers and managing your relationship with them is an
important part of running a retail business.
Read online:
Supplier selection process
Manage your suppliers
You can also get information about potential suppliers through our secondary market research service.
Contact us or read more online:
1-888-576-4444
Secondary market research service request
Regulations
Your business may need licences and permits from the federal, provincial and municipal levels of government.
In addition to the information you will find in this guide, you can use BizPaL to find licences and regulations that may affect your business. You
can also contact us to speak to someone about starting your business.
Contact us:
1-888-576-4444
Permits and licences search
Your retail business may need to follow several different regulations depending on your products and activities, including: 
Consumer product labelling (non-food)
There are labelling standards for everyday consumer products (like t-shirts, office supplies and pet food) that you need to know about before
you begin selling products.
The Competition Bureau regulates labelling for most “non-food” consumer products. To learn more about the rules for packaging, labelling and
advertising your products, contact the Competition Bureau directly or refer to the following link:
Contact the Competition Bureau:
1-800-348-5358
Labelling corner
The Competition Bureau also publishes individual guides on labelling requirements for certain business activities and consumer products. Refer
to the following guides if you need more information on a specific aspect of labelling:
Labelling - packaging consumer products (non-food)
Learn about your responsibilities when packaging and labelling consumer products (including pet food).
Read online:
Guide to the Consumer Packaging and Labelling Act and Regulations
Consumer packaging and labelling
Made in Canada
Learn about the rules and regulations for using claims like "Designed in Canada" or "Made in Canada" to promote your products.
Read Online:
"Product of Canada" and "Made in Canada" claims
Labelling textiles
If you are selling textile products such as clothes, carpets or upholstery within Canada, the product must be labelled appropriately.
The label on your products must show the fibre content information in both English and French. The Canadian manufacturer, processor or
finisher must be identified either through a CA Number (for Canadian dealers only) or by listing their complete business name and postal
address.
For specific textile labelling requirements, visit the Competition Bureau website.
Read online:  
Guide to the textile labelling and advertising regulations
Consumer product safety
If you manufacture, import, distribute or sell products in Canada, you are responsible for ensuring that they are safe. Health Canada provides
information on the regulations for clothing, accessories, hazardous materials, household products and children’s products.
Read online:
Canada Consumer Product Safety Act Quick Reference Guide
Health Canada - Industry Guide to Second-hand Products
Food safety and labelling
Your local health unit is the main contact for information on food safety and inspections.
Contact your local health authority to arrange an inspection of your business location, equipment and processes and make sure your business is
complying with provincial and federal legislation.
The following link provides contact information for local health authorities that inspect food businesses in Ontario.
Read online:
Local public health contacts
You also need to follow safety standards and labelling rules if you produce, service, process or manufacture food.
Canadian Food Inspection Agency (CFIA)
Most businesses that buy, sell, ship, process or manufacture food will have CFIA regulations to follow.
These regulations may require you to:
 Obtain a licence
 Keep records
 Properly label packaged foods
Activities that are regulated include:
 Importing foods for re-sale
 Selling food to the public, retail food sales
 Shipping food products to another province or territory
 Producing, manufacturing or advertising food products
Check with the CFIA to find out which requirements apply to your business.
Contact CFIA:
1-800-442-2342
Food licences
Food safety for industry
Toolkit for businesses
Labelling, standards of identity and grades
Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA)
You may have regulations or inspection standards to follow if you produce, transport or manufacture specific food products in Ontario.
Regulated products include dairy, eggs, fish, meat, honey and other plant-based products. Contact the Ministry directly to find out what will
apply to your business.
Contact OMAFRA:
1-877-424-1300
Regulations for the food industry
Ontario Ministry of Health
Home-based food businesses are allowed to sell low-risk, home-prepared foods and are exempt from certain regulatory requirements, such as
specified handwashing stations in food premises, compliance with commercial dishwashing requirements and food handling training
certification.
Low-risk food items are generally considered non-hazardous and do not require time and temperature control. Some examples of low-risk
foods include:
 Most breads and buns (without meat, cream filling, etc.)
 Most baked goods (with no custard)
 Chocolate, hard candies and brittles
 Fudge and toffees
 Pickles, jams and preserves
 Granola, trail mix, nuts and seeds
 Cakes (icing that doesn’t require refrigeration), brownies, muffins and cookies
 Coffee beans and tea leaves
For more information contact your local public health unit:
https://www.phdapps.health.gov.on.ca/PHULocator/Default.aspx
Read online:
A Guide to Starting a Home-based Food Business (pdf)
 
Music licence
When your business uses recorded music, you are responsible for obtaining the right licence(s) for that use. Contact the following organization
for more information:
Entandem
Organizations that use music are legally required to obtain applicable RE:SOUND and SOCAN licences. Entandem enables businesses that use
music to complete both licences at one time, through a single music license, so that rights-holders can be compensated for what they have
fairly and legally earned through their work.
Contact Entandem:
license@entandemlicensing.com
Entandem
Tobacco Retail Dealer's Permit
In order to sell tobacco products, you are required to have an Ontario Tobacco Retail Dealer's Permit. If you plan on importing tobacco
products, you will also need an importer's registration certificate.
Stocking or selling illegal (or contraband) cigarettes that do not have an Ontario tax mark (yellow tear strip) is prohibited. Unauthorized
possession of unmarked cigarettes may result in penalties, fines, imprisonment and forfeiture of the product.
There are also other commercial activities in the tobacco sector that require registration with the Ontario Ministry of Finance.
Contact the Ministry of Finance:
1-866-ONT-TAXS (1-866-668-8297)
Rules for Tobacco Retail Dealers
Tobacco Retail Dealer's Permit (PDF)
Importing Tobacco
Illegal (Contraband)Tobacco 
Learn about the Ontario Tobacco Tax and who needs to register
Smoke-Free Ontario
Find out what your responsibilities are for marketing, packaging or displaying tobacco products. You must also follow the regulations that apply
to smoking in public places like offices, shops, or bars and restaurants.
Contact your local Public Health Unit: 
Public Health Unit Locations 
Rules for selling tobacco and vapour products
Where you can’t smoke or vape in Ontario
Tobacco Sales
The manufacture, sale, labelling and promotion of tobacco products are regulated in Canada. Find out what federal regulations will affect your
business if you sell tobacco products.
Read Online:
Tobacco: Federal Regulations
You should also contact the municipality where the business will be operating for any local licences or permits that you may need.
Contact AMO:
1-877-426-6527
Association of Municipalities of Ontario
Lottery tickets
If you plan on selling lottery products on behalf of the Ontario Lottery and Gaming Corporation (OLG), or selling break open tickets, you must
be registered with the Alcohol and Gaming Commission of Ontario (AGCO). 
Contact AGCO:
1-800-522-2876
Lottery retailer
Legal questions
You can contact Pro Bono Ontario’s free legal advice hotline to enquire about getting help with your everyday civil legal needs (no family law or
criminal law). The service is generally aimed at those who cannot afford a lawyer.
Note that service is not guaranteed and you will be asked questions as part of the qualifying process, such as the amount of personal income
earned by your household, your name, postal code and age range.
Contact Pro Bono Ontario’s Free Legal Advice Hotline:
1-855-255-7256
*
You can also contact the Law Society of Ontario's Law Society Referral Service if you have legal questions of a business nature. The service may
be able to assist you in finding a lawyer or paralegal, based on your needs.
Use online:
Law Society Referral Service
Taxation
Depending on your location and the type of products or services being offered, federal, provincial and/or municipal business taxes may apply.
Read online:
Taxation guide
If you sell goods and services in Ontario, you may need a business number to collect and remit the Harmonized Sales Tax (HST). Most
businesses that make less than $30,000 in any 12-month period are not required to charge HST; however, you can register voluntarily and claim
input tax credits. Speak with the Canada Revenue Agency (CRA) for more information.
Contact CRA:
1-800-959-5525
Canada Revenue Agency
Financing
Grants, contributions, subsidies and loan guarantees are available from various government sources. Use Innovation Canada’s online search
tool to look for programs and services that may apply to your business.
Search online:
Grow your business
Other resources
Associations
If you are interested in finding an association, use our secondary market research service request and have us search for one based on your
needs.

Industry specific links

 Retail Council of Canada
 Canadian Federation of Independent Business
 Canadian Federation of Independent Grocers
 Ontario Convenience Stores Association
 Retail Merchants Association of Canada Inc.
You can also find books, magazines and other relevant print material at business service organizations in your community. For more
information or to locate a local business centre, contact us at 1-888-576-4444.